NYSE:LAD

Stock Analysis Report

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Executive Summary

Lithia Motors, Inc. operates as an automotive retailer in the United States.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Lithia Motors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LAD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.8%

LAD

3.0%

US Specialty Retail

3.0%

US Market


1 Year Return

88.8%

LAD

8.3%

US Specialty Retail

15.8%

US Market

Return vs Industry: LAD exceeded the US Specialty Retail industry which returned 6.1% over the past year.

Return vs Market: LAD exceeded the US Market which returned 15.4% over the past year.


Shareholder returns

LADIndustryMarket
7 Day5.8%3.0%3.0%
30 Day51.2%10.5%6.0%
90 Day113.5%19.7%16.4%
1 Year90.2%88.8%9.4%8.3%18.4%15.8%
3 Year141.0%133.6%55.4%48.6%44.8%35.4%
5 Year120.0%108.8%31.0%20.9%75.7%56.7%

Price Volatility Vs. Market

How volatile is Lithia Motors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lithia Motors undervalued compared to its fair value and its price relative to the market?

20.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LAD ($242.5) is trading above our estimate of fair value ($17.01)

Significantly Below Fair Value: LAD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LAD's PE Ratio (20.3x) is in line with the US Specialty Retail industry average.

PE vs Market: LAD is poor value based on its PE Ratio (20.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: LAD is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: LAD is overvalued based on its PB Ratio (3.6x) compared to the US Specialty Retail industry average (1.4x).


Next Steps

Future Growth

How is Lithia Motors forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAD's forecast earnings growth (21.6% per year) is above the savings rate (2.2%).

Earnings vs Market: LAD's earnings (21.6% per year) are forecast to grow slower than the US market (22.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LAD's revenue (19.7% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: LAD's revenue (19.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAD's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has Lithia Motors performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAD has high quality earnings.

Growing Profit Margin: LAD's current net profit margins (2.3%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: LAD's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: LAD's earnings growth over the past year (2.2%) is below its 5-year average (10.6% per year).

Earnings vs Industry: LAD earnings growth over the past year (2.2%) exceeded the Specialty Retail industry -16.1%.


Return on Equity

High ROE: LAD's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is Lithia Motors's financial position?


Financial Position Analysis

Short Term Liabilities: LAD's short term assets ($2.4B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: LAD's short term assets ($2.4B) exceed its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: LAD's debt to equity ratio (184.7%) is considered high.

Reducing Debt: LAD's debt to equity ratio has reduced from 246.1% to 184.7% over the past 5 years.

Debt Coverage: LAD's debt is well covered by operating cash flow (36.9%).

Interest Coverage: LAD's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Lithia Motors's current dividend yield, its reliability and sustainability?

0.51%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: LAD's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: LAD's dividend (0.51%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

Stable Dividend: LAD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: LAD is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LAD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LAD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Bryan DeBoer (54 yo)

8.25yrs

Tenure

US$7,310,816

Compensation

Mr. Bryan B. DeBoer has been the Chief Executive Officer and President of Lithia Motors Inc, since May 1, 2012 and January 9, 2006 respectively. Mr. DeBoer served as the Chief Operating Officer of Lithia M ...


CEO Compensation Analysis

Compensation vs Market: Bryan's total compensation ($USD7.31M) is about average for companies of similar size in the US market ($USD7.33M).

Compensation vs Earnings: Bryan's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sidney DeBoer
Founder & Chairman4.67yrsUS$273.77k0.24%
$ 13.4m
Bryan DeBoer
CEO, President & Director8.25yrsUS$7.31m0.98%
$ 54.3m
Tina Miller
Senior VP & CFO1.42yrsUS$1.06m0.0072%
$ 401.0k
Christopher Holzshu
COO & Secretary0.75yrUS$2.93m0.16%
$ 8.7m
Thomas Dobry
Senior VP & Chief Marketing Officer2.58yrsUS$1.35m0.032%
$ 1.8m
Scott Hillier
Senior Vice President of Operations12.58yrsUS$1.88m0.22%
$ 12.0m
George Hines
Senior VP and Chief Technology & Innovation Officer2.08yrsno data0.022%
$ 1.2m
Eric Pitt
VP of Investor Relations & Treasurerno datano datano data
David Stork
Chief Legal Officer1.58yrsno datano data
Erik Lewis
Senior VP & Chief Human Resources Officer2.08yrsno datano data
Bryan Osterhout
Senior Vice President of Northwest U.S. & Alaska Substantial Group of Stores17.58yrsno datano data
Chun-Wai Liang
Senior Vice President of DCH Operations5yrsUS$955.74kno data

2.3yrs

Average Tenure

54yo

Average Age

Experienced Management: LAD's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sidney DeBoer
Founder & Chairman4.67yrsUS$273.77k0.24%
$ 13.4m
Bryan DeBoer
CEO, President & Director8.25yrsUS$7.31m0.98%
$ 54.3m
David Robino
Independent Director4.42yrsUS$265.99k0.034%
$ 1.9m
Kenneth Roberts
Independent Director8.33yrsUS$274.18k0.42%
$ 23.1m
Susan Cain
Independent Director11.17yrsUS$270.05k0.048%
$ 2.6m
Louis Miramontes
Lead Independent Directorno dataUS$260.99k0.0087%
$ 481.3k
Shauna Mcintyre
Independent Director1.33yrsUS$222.65k0.012%
$ 658.6k

6.5yrs

Average Tenure

65yo

Average Age

Experienced Board: LAD's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LAD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lithia Motors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lithia Motors, Inc.
  • Ticker: LAD
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: US$5.539b
  • Shares outstanding: 22.84m
  • Website: https://www.lithiainvestorrelations.com

Number of Employees


Location

  • Lithia Motors, Inc.
  • 150 North Bartlett Street
  • Medford
  • Oregon
  • 97501
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LADNYSE (New York Stock Exchange)YesClass A Common StockUSUSDDec 1996
LMODB (Deutsche Boerse AG)YesClass A Common StockDEEURDec 1996

Biography

Lithia Motors, Inc. operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Luxury. It offers new and used vehicles; vehicle financing se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 00:28
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.